Higgins Company purchased a patent from Monroe Limited for $203,400 on January 1, 2020. The patent has a remaining useful life of six years. Required a) Prepare the journal entry to record the purchase. Do not enter dollar signs or commas in the input boxes. Date Account Title and Explanation Debit Credit Jan Patents 203400 1 Cash 203400 To record the purchase of patents for cash b) Prepare the journal entry to record amortization for one year on December 31, 2020. The company does not use the half-year rule. Assume the straight- line method of depreciation is used. Round your answers to the nearest whole number. Date Account Title and Explanation Debit Credit Dec Amortization Expense 31 Allowance for Doubtful Accounts + To record amortization for the year
Higgins Company purchased a patent from Monroe Limited for $203,400 on January 1, 2020. The patent has a remaining useful life of six years. Required a) Prepare the journal entry to record the purchase. Do not enter dollar signs or commas in the input boxes. Date Account Title and Explanation Debit Credit Jan Patents 203400 1 Cash 203400 To record the purchase of patents for cash b) Prepare the journal entry to record amortization for one year on December 31, 2020. The company does not use the half-year rule. Assume the straight- line method of depreciation is used. Round your answers to the nearest whole number. Date Account Title and Explanation Debit Credit Dec Amortization Expense 31 Allowance for Doubtful Accounts + To record amortization for the year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Higgins Company purchased a patent from Monroe Limited for $203,400 on
January 1, 2020. The patent has a remaining useful life of six years.
Required
a) Prepare the journal entry to record the purchase.
Do not enter dollar signs or commas in the input boxes.
Date
Account Title and Explanation
Debit
Credit
Jan
Patents
203400
1
Cash
203400
To record the purchase of patents for
cash
b) Prepare the journal entry to record amortization for one year on December
31, 2020. The company does not use the half-year rule. Assume the straight-
line method of depreciation is used.
Round your answers to the nearest whole number.
Date
Account Title and Explanation
Debit
Credit
Dec
Amortization Expense
31
Allowance for Doubtful Accounts
To record amortization for the year
Check
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